MSMED Act Prevails Over Arbitration Act in Disputes Involving MSMEs: Delhi High Court

The Delhi High Court reaffirmed that the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, being a specific law, prevails over the Arbitration and Conciliation Act, 1996, which is a general law.

The Court ruled that Section 18 and Section 24 of the MSMED Act contain non-obstante clauses, giving it an overriding effect.

The court dismissed a petition under Section 11 of the Arbitration Act, emphasizing that the MSME Facilitation Council must adjudicate disputes involving MSMEs.

The ruling strengthens the statutory mechanism for delayed payments and interest recovery under the MSMED Act.